GNC Franchisee Wins Lawsuit

GNC Franchisee Wins Lawsuit

BOSTON--A General Nutrition Center (GNC) franchisee here in early March won a caseagainst the franchiser, General Nutrition Center. The settlement, in the amount of$508,680, will be paid to Anna Oganesov. Oganesov purchased and opened a GNC in downtownBoston and expected to be in a protected territory. However, the franchiser converted twonearby stores in the same area to GNC company stores. It was determined that Oganesov'soriginal contract was for Brookline, Mass., but that was changed and GNC was notified.However, neither party changed the original franchise agreement, so GNC claimed there wasno franchisee on record at Oganesov's current store address. After a four-day trial, JudgeJoseph M. James awarded damages to Oganesov. The damages were determined by estimating theprofit she would have made if she had been operating the two nearby stores. E-mail DouglasM. Brooks of Martland & Brooks at [email protected]for more information.